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N26 eyes profitability in 2024

N26 eyes profitability in 2024

N26 says it expects to halve its net losses in in 2023 before hitting profitability on a monthly basis the following year. Meanwhile, the German digital bank has unveiled plans for a new investment product for stocks and ETFs.

In preliminary results, the firm says it expects a net loss of €100 million for 2023, on revenues of over €300 million, a 30% rise on the previous year.

The revenue growth is due to significant increases in account usage and customer activity, says N26, which has had its ability to grow its customer base hindered by a cap imposed by regulator Bafin.

Bafin put in the cap - set at 50,000 new customers a month - in 2021 over lax money laundering controls.

From December, the cap will be increased to 60,000, helping to push N26 to profitability on a monthly basis in the second half of 2024.

Having already left the US and UK, earlier this month the digital bank quit the Brazilian market as it narrows its focus on continental Europe.

Meanwhile, a deal with fintech Upvest will see customers given the opportunity to trade stocks and ETFs directly in the N26 app within the first half of 2024.

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